MSME Registration

The full form of MSME is Micro, Small and Medium Enterprises.

MSME stands for Micro, Small, and Medium Enterprises. MSME’s in India are supervised by the Ministry of micro, small and medium enterprises. The MSMED Act of India helps in the development and promotion of these enterprises by providing them various incentives and schemes. In order to avail all these schemes and incentives MSME registration is mandate.

There are three types of enterprises in MSME. These are: 1.Micro Enterprises: An enterprise whose investment for plants and machinery does not exceed 25 lakh rupees is known as micro enterprise. The micro enterprises have equipment investments around 10 lakh rupees. 2.Small Enterprises: An enterprise whose investment for plants and machinery exceeds 25 lakh rupees but less than 5 crore rupees are known as small enterprise. The small enterprises have equipment investments above 10 lakh rupees but not more than 2 crore rupees. 3.Medium Enterprises: An enterprise whose investment for plants and machinery exceeds 5 crore rupees but less than 10 crore rupees are known as medium enterprises. The medium enterprises have equipment investments above 2 crore rupees but more than 5 crores.

The two classes of MSME are as follows: 1.Manufacturing enterprises: The manufacturing enterprises are those enterprises which are involved in the production and manufacturing of the goods and products. It mainly deals with the plant and machinery investments. 2.Service enterprises: The service enterprises are those enterprises which are involved in providing or rendering services. It mainly deals with the equipment investments.

Following below can register for MSME: 1.Private limited company. 2.Public limited company. 3.One person Company. 4.Limited Company. 5.Propietorships. 6.Hindu undivided family.

It takes 2 working days to obtain the MSME Certificate.

A MSME certificate is a type of statutory document that is issued by the Government. MSME Certificate is the substantiation proof of the business and its type. MSME certificate helps the small scale industries to avail certain benefits and schemes under the Micro, Small, and Medium Enterprises Development Act of 2006.

The documents and information that are required for MSME registration are as follows: • Business address proof: Allotment letter, possession letter, utility bills, if the premises are rented then NOC from the landlord. • Copies of sales and purchase bills: Business sales and purchase bills are also required for the MSME registration. • Identity Proof: PAN Card, Aadhar Card, Driving License, Voter’s Id, Passport. • Partnership firms: Partnership deed and registration certificate. • Financial documents: Bank statements, ITR balance sheets, bank account number • Number of employees. • Name of the enterprise. • Business activity of the enterprise. • Date of commencement of the business

An enterprise whose investment for plants and machinery does not exceed 25 lakh rupees is known as micro-enterprise. The micro-enterprises have equipment investments around 10 lakh rupees.

An enterprise whose investment for plants and machinery exceeds 25 lakh rupees but less than 5 crore rupees are known as a small enterprise. The small enterprises have equipment investments above 10 lakh rupees but not more than 2 crore rupees.

An enterprise whose investment for plants and machinery exceeds 5 crore rupees but less than 10 crore rupees are known as medium enterprises. The medium enterprises have equipment investments above 2 crore rupees but more than 5 crores.

Yes, Aadhar Card is mandatory for MSME Registration

Yes, both new and existing businesses can apply for MSME Registration/Udyam Registration.

The MSME Certificate is valid for lifetime till you exceed your turnover limit.

Some of the benefits of registering under MSME Registration are: 1.Preference in the Government Tenders : The certified MSME enterprises are given the highest priority in lending government tenders during any bid. This is one of the most important benefit for registering under MSME and winning the big tenders. Hence, registered MSME’s get higher preferences than those enterprises which are not registered. 2.Concession in the Electricity Bills: The certified MSME’s can enjoy the bill reduction. Electricity duty is excluded from the electricity bills for the certified enterprises. So the certified MSME’s can avail concession in the electricity bills. 3.Tax benefits: The certified MSME’s can also enjoy the deduction in their taxes. The registered MSME’s are provided with various tax subsidies. 3.Industrial Promotion Subsidy :The Government provides various subsidies to the small scale industries in order to the promote them. 4. Reimbursement in ISO Certification Charges: The certified or registered MSME enterprises can claim the expenses for reimbursement that incurred on ISO certification. 5.Easy Bank Loans: It is easier for certified MSME’s to get bank loans with low interest rates. The banks provide loans to MSME’s at cheaper rates as compared to large sized companies. Banks and some other financial institutions also provide various special schemes to the certified MSME’s. 6.Patent Registration Subsidy: The Business enterprises which are registered under the MSME Act are provided with a heavy subsidy for patent registration of about 50 percent. The subsidy for patent registration can be used by sending an application to the respective authority .

No. Only the manufacturing and service sectors can register under MSME.

No, only a single MSME Registration is required for manufacturing plants in different states.

There are some specific activities which are excluded frim MSME. These are: • Aquaculture and fishing • Forest and logging • Wholesale and retail trade except for motor vehicles and motorcycles. • The activities related to extraterritorial organizations and bodies.

Yes, MSME Registration is compulsory in India

MSMED is Micro, Small, and Medium Enterprise Development Act, 2006